The global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 2541.81 Bn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive parts remanufacturing involves rebuilding automotive parts to same performance level as new parts without compromising on safety, reliability and quality. Remanufacturing of core components such as engines, transmissions, fuel injection systems and turbochargers helps extend the life of vehicles while being more economical and environment friendly compared to replacements with new parts.
Market key trends:
One of the key trends driving growth in the automotive parts remanufacturing market is the increasing vehicle recycling rates across regions. As per statistics, over 10 million vehicles reached end of life in North America alone in 2021. Retrieving good quality core components from these vehicles enables their remanufacturing into like-new products. Furthermore, stringency in emission regulations have compelled both automakers and consumers to opt for remanufactured components as a more affordable and eco-friendly alternative to new parts. The cost benefits of up to 30-50% with remanufactured parts compared to new also contributes to the growing demand.
Segment Analysis
The global automotive parts remanufacturing market is segmented into engine & related parts, transmission & drivetrain, electric & electronics, suspension, brake, and others. The engine & related parts segment dominated the market in 2023 and is expected to continue its dominance during the forecast period. This is due to the higher failure rates of engine components such as turbochargers, fuel pumps, and radiators as compared to other components. Remanufacturing of engine parts provides significant cost benefits.
Key Takeaways
The Global Automotive Parts Remanufacturing Market Size was valued at US$ 2541.81 billion in 2023 and is expected to grow at a CAGR of 8.7% during the forecast period.
Regional Analysis
North America dominated the global market in 2023 and accounted for over 30% share of the total market revenue. This is attributed to the rising vehicle fleet and average age of vehicles in the US and Canada. Europe held the second position and is projected to grow at a CAGR of 7.3% during 2023-2030.
Key Players
Key players operating in the automotive parts remanufacturing market are Valeo SA, ZF TRW, Carwood Group, Robert Bosch GmbH, Meritor Inc., Monark Automotive GmbH, Budweg Caliper A/S, Genuine Parts Company, ATC Drivetrain Inc., Maval Manufacturing Inc., Teamec BVBA, Motorcar Parts of America, Inc., and Jasper Engines and Transmissions.
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Giving a less expensive option in contrast to buying brand new automotive parts, remanufacturing market in general gain traction when customer expending drops.
On the other hand, in a quickly developing economy then again, purchasers have a tendency to pick novel products over remanufactured ones and thus, the market for remanufactured automotive parts encounters a dive.Monetary advantages will remain the essential aspect boosting the market.
Reliably vigorous requirement for remanufactured alternators and starters will moreover keep on propelling the sales over the approaching years.
Rise of hybrid and electric vehicles will be a remarkable driver to overall market.The normal age of the current vehicles fleet is expanding, demonstrating a sturdy impulse to the requirement.
This is considered to impel the sales throughout the following couple of years.Developing concerns with respect to overall environmental impact and carbon footprint of recently made automobiles and expanded utilization of remanufactured transmission in elevated technology hybrid and electric vehicles will jointly fuel the requirement.
This can represent a noteworthy challenge to new sales in the approaching years.
